Trust, inter-partner conflicts, cultural distance, commitment and joint venture performance : an empirical analysis of international joint ventures in Turkey

Demirbag, Mehmet and Weir, David T.H. and Mirza, Haiz (2002) Trust, inter-partner conflicts, cultural distance, commitment and joint venture performance : an empirical analysis of international joint ventures in Turkey. Journal of Transnational Management Development, 8 (1/2). pp. 111-140. ISSN 1068-6061

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Abstract

Despite the increasing popularity of international joint ventures and strategic alliances, experiences and observations of businessmen and managers alike suggest that this type of organisation is not complication-free. These complications may cause some distinct disadvantages; such company marriages may even end up with divorce, if they are overlooked or ignored. This research is based on an in-depth study of manufacturing joint ventures with Turkish partners. This article discusses trust/forbearance, cultural distance, inter-partner conflicts, commitment, and their impact on joint venture performance. Through the path analysis, the paper offers a model as to the sequencing of the various component factors and puts them in a usable framework. Thus, the paper develops the notion that trust/forbearance is a key dimension for under standing the performance of international joint ventures and strategic alliances alike.